5. We will unswervingly deepen reform and expand opening up, and improve systems and mechanisms conducive to scientific development.
1) Reform of the pricing system will progress steadily. We will implement policies for reforming prices of refined petroleum products and related taxes and fees, improve supporting measures, and establish a mechanism for setting prices and related taxes for them that is conducive to scientific development. We will deepen reform of electricity prices, and gradually improve the mechanism for setting the price of electricity supplied to power grids, the price for its transmission and distribution, and the price for its sale to end-users. Prices for coal, electricity and natural gas will be adjusted when necessary. We will carry out water price reform, continue to impose progressive surcharges on non-household consumers that exceed water use quotas, and gradually increase prices for water supplied from water conservancy projects for non-agricultural use.
2) Reform of the investment system will be deepened. We will improve the system for managing government investment, and accelerate implementation of the contractor system for construction projects. We will create and implement a system for assessing finished investment projects, a public notice system for major investment projects and an accountability system for decisions made on investment projects. We will continue to reform the system of project examination and approval, standardize the methods for approving and recording investment projects, reduce the range of approval, define approval authority scientifically and enforce approval procedures strictly.
3) Reform the fiscal and taxation systems will be intensified. We will enforce the newly revised interim regulations on value-added tax, business tax and excise tax, and comprehensively implement VAT reform. We will accelerate reform of resource taxes and fees, and make both domestic and overseas-funded enterprises and Chinese and foreign nationals pay the same urban construction and maintenance tax and education surcharge. We will also deepen reform of the budgetary system and accelerate the reform to put county public finance directly under the supervision of provincial governments.
4) Reform of the financial system will progress steadily. We will accelerate the introduction of a stockholding system in the Agriculture Bank of China, vigorously develop new types of financial institutions in rural areas and continue to reform policy banks. We will develop a multi-level system for capital markets, vigorously yet prudently introduce a growth enterprise market, further improve the market systems and environment for venture capital, equity investment and debt financing, and strengthen the market-based system for issuance of securities and the mechanism to get issuers to exercise self-restraint.
5) Reform of the pharmaceutical and health care system will continue. We will accelerate establishment of a system of basic medical insurance, set up a national system for basic drugs, further improve the community-based medical and health service system, improve the policy for subsidizing public health institutions, and reform public hospitals on a trial basis in order to guarantee equal access to basic public health services.
In addition, we will promptly deliberate and formulate long- and medium-term plans for reforms and coordinate national and provincial-level pilot reforms to promote comprehensive and sustainable development. We will continue to deepen reforms of state-owned enterprises, monopoly industries and the government administrative system and also help the non-public sector adapt to market changes and overcome difficulties presently hindering its development.
We will do everything possible to promote steady development of an outwardly oriented economy.
1) We will work hard to maintain steady export growth by competing on quality and efficiency and diversifying export markets. We will promptly improve policies and measures to ease major difficulties of export-oriented enterprises. We will speed up efforts to open up emerging markets that have strong demand while strengthening traditional markets. We will take an active part in setting up free trade zones with prospective countries and regions. We will steadily promote transformation and upgrading of processing trade and encourage enterprises engaging in it to extend their chains of production and relocate their production to the central and western regions. We will vigorously develop trade in services, promptly implement policies and measures to encourage contracting of services outsourced on the international market and effectively ease trade frictions. We will increase imports of advanced technical equipment, key spare parts and components, and important energy resources and raw materials to build up the country's reserves of strategic goods and emergency supplies.
2) We will utilize foreign capital actively and effectively. We will further improve the investment environment, utilize foreign funds in an innovative way, and guide them toward industries such as high technology, advanced manufacturing, energy conserving and environmental protection industries and modern services. The central and western regions will be supported in taking full advantage of their low costs and rich resources to attract foreign funds. We will severely restrict foreign investment in energy-intensive and highly polluting industries. Management of foreign loans will be improved. Foreign loans and foreign direct investment in 2009 are expected to reach $25.8 billion and $92.4 billion respectively.
3) We will strengthen planning and policy guidance for China's investment overseas and encourage Chinese enterprises to energetically yet steadily expand investment and cooperation overseas. We will improve the mechanisms for investing in and cooperating with key countries and strengthen mutually beneficial international cooperation on energy and resources. We will effectively guard against and reduce risks to the country's overseas capital. Considering the favorable conditions for expanding investment abroad, China's overseas direct investment is expected to grow by 13.2% in 2009 despite the negative impact of the global financial crisis on direct investment and the increasing difficulties domestic enterprises face in their production and operation.